Sabtu 26 Oct 2013 14:26 WIB

Fuel subsidy, the burden of state budget

Rep: Muhammad Iqbal/Mutia Ramadhani/ Red: Julkifli Marbun
Biofuel (ilustrasi)
Biofuel (ilustrasi)

REPUBLIKA.CO.ID, JAKARTA -- State budget in 2014 is still burdened with three classical problems, fuel oil subsidy, the high personnel expenditures and debt interest payments. Chairman of Budget Committe, Ahmadi Noor reminds government's commitment to reduce subsidies.

"Government must control fuel subsidy not to exceed the quota of 48 million kiloliters," Noor said in a plenary session recently.

Parliement approved draft budget for 2014 as state budget. Government expenditures consist of personnel expenses worth 263.977 trillion IDR, goods expenditure (201.88 trillion IDR), capital expenditure (205.84 trillion IDR), debt interest payments (121.28 trillion IDR) and energy subsidies (282.1 trillion IDR).

Energy expenditure consists of fuel subsidy worth 210.7 trillion IDR and electricity worth 71.4 trillion IDR. Value of fuel subsidy in 2014 is much higher than 2013, which reached 199.7 trillion IDR.

State income is targeted 1,667.14 trillion IDR, while spending worth 1,842.5 trillion IDR. There is a budget deficit of 175.34 billion IDR or 1.69 percent of gross domestic product (GDP). However, the figure is still considered safe as it has not exceeded three percent of GDP.

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